If you are one of those people who seem to have vague ideas about what type of startup you want to open, you are not alone. Many people have this ambition that they would like to achieve with the end goal of becoming rich, successful and leading a happy live. Unfortunately, they often have difficulty defining exactly what they are going to start and when we asked quite a number of people, we got that many different ideas.
What we also found during this quest of finding answers is the fact that many complained that their dreams never came true. They also had trouble explaining what they intended to do or how they would plan to reach their goals. Evidences suggest that people who have successfully established startup companies have clearly known what they want from the beginning and how they are going to do it. What we can infer from all of these findings is that in order to start a company, it is important to decide where to start, also known as goal setting.
A number of strategies can help you set goals for a startup. These goals should be reasonable and achievable to the best of your ability. They should be specific, action-oriented, realistic and reached in a timely manner. In other words, goals must be specific when you are spending a lot of time, money and effort moving forward. We have often heard some people say that they want to create apps and sell it big. But what type of applications are they talking about? People also talk about running a service provider company, but whom are they servicing? What aspect of the business they are interested in? Unless you have a clearly defined strategy to achieve these goals, you will have trouble figuring out the best way to start.
Any goal that you set for your startup should be measurable at its best. Otherwise, you won’t be able to evaluate your progress down the road. For instance, you can easily determine what the startup cost will be. And if you want it to be more precise, you could hire a professional to estimate the exact amount. If you are willing to take a little more risk and expand to other areas of the business during the initial stage, you can do so with these professionals’ advice based on your financial situation and available funding sources.
To open a startup, just dreaming big is never enough. You must plan the course of action that you can follow to meet your business goals and objectives. The best way to prepare your action plan is to put everything in writing. For example, if you are planning to buy equipment instead of leasing, you need to figure out the cost, type, brand and deals for those equipment as well as when and how you are going to procure them. Once you have all of these written down, list all the possible ways to achieve those plans. Enlist the help of an expert whenever you need.
When you have written down the general action plan for your startup, it is time to move on to the next step – breaking down this plan into executable chunks. This could be a daily plan of action or weekly plan of action to achieve one collective goal. If you are new to this exercise, there are many resources in the form of books and software to accomplish the tasks. Perhaps this way you will also spend less time figuring out the task every time something comes up. Your plan of action might include the specific hours in a day that you are going to set aside for business purpose, such as meeting clients, buying machinery, software and other things pertaining to the company as well as executing these plans.
Review everything you do by the end of the day or week whichever is convenient for you. If you follow these steps religiously, you will have the knowledge of your progress. If you aren’t able to achieve this the first time, don’t be discouraged. Studies suggest that it takes at least a month for an action to become a habit. Likewise, even if things fail to work for a couple of months, doesn’t mean the action plan will not work in the future. You need to find out what works best for your situation.
Again, your goals need to be realistic. Everyone who wants to start a business do it for various reasons. What is your reason for a startup? Do you want to be rich and successful? Do you want to contribute to the society in your own way? Many people enjoy the status of being their own boss or working for themselves. Others do it to achieve financial freedom. What is your real reason and how are you going to reach your realistic goals? Running a startup company is a realistic goal and it is completely unrealistic to expect that you will be rich overnight, in a week or month. Also important is to review your action plan from time to time. Did you achieve what you wanted? If you did, you will know the level of your progress and how much more needs to be done to reach goals. Try to stick to the action plan as much as possible. You need to find out what works best for your company given the various constraints so don’t hesitate to change the plan wherever necessary.
John started his gym business and set off to acquire one of the expensive vacant buildings in the city. After the first two months, he failed to pay his monthly mortgage and on the eighth month of continuous non-payment, his business went to foreclosure. His personal finance took a hit due to collateral associated with this business loan. Eventually he sought professional advice and filed for bankruptcy to escape from the mess. Like John, many people take the plunge of starting their own business without thinking or finding out ahead of time the consequences for not meeting financial goals within a certain period of time. Typically, a detailed analysis of one’s financial standing consists of how much loan you can afford to pay every month, what would be your projected revenue, how much initial loss can you withstand and so on. The most effective way is to seek assistance from someone who is experienced in this area. Fortunately, a growing number of entrepreneurs are recognizing the need for this evaluation to avoid mistakes in the future. Many of them are seeking flexible payment plan and fund sources other than banks and credit unions. These moves seem to be a sensible remedy for their financial woes and will likely reduce their exposure to high interest rate and stricter loan regulations.
The type of startup plays a huge role in how successful you are going to be. If you are starting something on your own that you are skilled in, that’s a good move. One of the main reasons that people fail the first year of opening their business is they do things that they are interested in but lack relevant skills. Many people are also indiscriminate about the business they choose and additionally, they are often compelled to choose the tasks randomly. This strategy will not work for the long run. Therefore, it is crucial to know what type of business you are going to start well ahead of the time.